Nippon Hume Corp. (5262) AI Stock Analysis

• Market Cap: ¥81.26B
• Dividend Yield: 1.3%
• Average Volume (3M): 536.28K
• Price to Earnings (P/E): 26.2
• Beta (1Y): 0.89
• Revenue Growth: 1.89%
• EPS Growth: 16.71%
• Country: JP
• Employees: 552
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 54.45
• Shares Outstanding: 29,347,500
• 10 Day Avg. Volume: 294,130
• 30 Day Avg. Volume: 536,283
• PEG Ratio: 0.25
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 1.27
• P/FCF Ratio: -78.63
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• Price Target: ¥3,568.00 ▲(13.27% Upside)

Nippon Hume Corp. shows strong financial stability and revenue growth, which are significant strengths. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. Cash flow management issues also pose a risk to the company's growth strategy.

Nippon Hume Corp. Business Overview & Revenue Model

Company Description

Nippon Hume Corporation designs, manufactures, and sells concrete secondary products in Japan and internationally. The company offers pipeline products, such as hume tubes and synthetic steel pipes, box and arch culverts, assembly manholes, precast joint grooves, wellman products, jip pipes, propulsion pipes, optical fiber compatible products, and antibacterial concrete products; concrete piles; RC segments and FN fittings; and PC and composite wells, and press casts and PRC hollow piers. It also provides multi-arch divided systems, precast guard fences, EMC wall rails, and wall railings; and valve boxes, precast retarding basins, and eco concrete products, as well as optical fiber cables. Further, the company is involved in the construction contracting, and civil engineering and telecommunications works; sale of concrete products and big agents; sports business; manufacture, sale, design, and equipment construction of deplant deodorization system; maintenance of buildings; manufacture and sale of formwork for concrete products; real estate business; laying business; and pipeline diagnosis business. The company was founded in 1925 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Nippon Hume Corp. generates revenue primarily through the sale of cement and concrete products to the construction industry. Its key revenue streams include the production and distribution of ready-mixed concrete, precast concrete products, and other cement-based materials. The company benefits from long-term contracts with construction firms and government projects, ensuring a steady flow of income. Additionally, Nippon Hume has established partnerships with various stakeholders in the construction sector, allowing it to leverage collaborative projects that enhance its market presence. Factors contributing to its earnings include the demand for construction materials in urban development, infrastructure projects, and a focus on environmentally friendly practices that attract clients looking for sustainable solutions.

Nippon Hume Corp. Financial Statement Overview

Summary

Nippon Hume Corp. demonstrates strong revenue growth and robust financial stability with a low debt-to-equity ratio and high equity ratio. However, cash flow management needs improvement, as indicated by negative free cash flow and a low operating cash flow to net income ratio.

Income Statement

Nippon Hume Corp. shows a strong revenue growth trajectory, with a consistent increase over the years. The company achieved a net profit margin of 8.22% in the latest annual report, indicating solid profitability in the construction industry. The gross profit margin of 19.60% and EBIT margin of 5.45% are commendable, although there is room for improvement in operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.02, suggesting minimal financial leverage and low risk. The equity ratio is robust at 74.45%, underscoring the company's stable financial structure. However, the return on equity of 7.15% indicates moderate efficiency in generating returns on shareholder investments.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, which was negative in the most recent year. The operating cash flow to net income ratio of 0.29 suggests potential issues in cash conversion efficiency. Despite these challenges, the company has maintained a reasonable free cash flow to net income ratio over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	36.09B	37.06B	33.73B	31.88B	29.50B	30.45B
Gross Profit	7.07B	7.26B	5.89B	5.37B	5.56B	5.51B
EBITDA	4.49B	4.60B	3.30B	2.76B	3.50B	3.30B
Net Income	2.97B	3.05B	1.91B	1.64B	2.14B	2.13B
Balance Sheet
Total Assets	57.62B	57.24B	62.08B	54.98B	52.12B	50.42B
Cash, Cash Equivalents and Short-Term Investments	11.74B	12.75B	14.39B	12.46B	13.07B	12.33B
Total Debt	3.02B	855.03M	1.51B	1.07B	982.03M	928.05M
Total Liabilities	13.38B	14.16B	20.48B	16.78B	15.19B	14.40B
Stockholders Equity	43.76B	42.61B	41.13B	37.90B	36.63B	35.69B
Cash Flow
Free Cash Flow	0.00	-596.51M	2.07B	-37.02M	501.88M	2.89B
Operating Cash Flow	0.00	897.21M	2.77B	649.98M	972.88M	3.60B
Investing Cash Flow	0.00	36.60M	-121.63M	-757.59M	561.83M	-1.16B
Financing Cash Flow	0.00	-2.53B	-790.56M	-519.52M	-823.73M	-473.46M

Nippon Hume Corp. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3150.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:5262, the sentiment is Neutral. The current price of 3150 is below the 20-day moving average (MA) of 3376.25, below the 50-day MA of 3525.68, and above the 200-day MA of 2338.14, indicating a neutral trend. The MACD of -87.93 indicates Positive momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 10.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:5262.

Nippon Hume Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5237	―	¥11.62B	12.39	―	3.93%	-2.90%	-24.21%
6485	―	¥30.00B	10.61	―	4.52%	-1.06%	58.50%
5273	―	¥113.70B	13.23	―	1.79%	8.66%	12.34%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
5262	―	¥81.26B	26.17	―	1.30%	1.89%	16.71%
7943	―	¥101.78B	53.67	―	4.11%	1.05%	-76.91%
5337	―	¥17.70B	15.45	―	―	-11.27%	―

Nippon Hume Corp. Corporate Events

Nippon Hume Completes Treasury Share Acquisition to Enhance Capital Strategy

Nippon Hume Corporation has completed the acquisition of 200,000 treasury shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3, as part of its strategy to implement flexible capital policies and enhance shareholder value. This move, resolved by the Board of Directors in August 2025, reflects the company’s response to the current business environment and its financial strategy to optimize capital structure.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen4517.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Corp. Announces Treasury Share Buyback Plan

Nippon Hume Corporation has announced its decision to repurchase 200,000 of its common shares through the Tokyo Stock Exchange’s off-auction trading system, ToSTNeT-3, at a fixed price of ¥3,270 per share. This strategic move, resolved at the Board of Directors meeting, aims to optimize the company’s capital structure and potentially enhance shareholder value, though the actual execution of the purchase may vary based on market conditions.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen4517.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Reports No Treasury Share Purchases in September

Nippon Hume Corporation announced that no treasury shares were purchased during the period from September 1 to September 30, 2025, despite a prior resolution allowing for the acquisition of up to 200,000 shares. This lack of activity in share repurchase could impact the company’s market positioning and shareholder value strategy.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen4517.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Announces Share Split and Financial Strategy Adjustments

Nippon Hume Corporation announced a share split to enhance corporate value and improve share liquidity, effective January 1, 2026. The company also amended its Articles of Incorporation to increase authorized shares, revised treasury share purchases, and adjusted dividend forecasts, reflecting the share split’s impact on its financial strategies.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen4517.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume’s Treasury Share Purchase Update

Nippon Hume Corporation announced that no treasury shares were purchased during the period from August 28 to August 31, 2025, despite a board resolution allowing for the purchase of up to 200,000 shares. This lack of activity may affect the company’s stock market strategy and shareholder value, as the intended share buyback was not executed.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen3504.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Corp. Announces Treasury Share Buyback Plan

Nippon Hume Corporation has announced a decision by its Board of Directors to purchase up to 200,000 of its common shares, representing 0.8% of its total issued shares, excluding treasury shares. This move, with a maximum cost of ¥700,000,000, is aimed at implementing a flexible capital policy and returning profits to shareholders, reflecting the company’s strategic response to the current business environment.

The most recent analyst rating on (JP:5262) stock is a Hold with a Yen3504.00 price target. To see the full list of analyst forecasts on Nippon Hume Corp. stock, see the JP:5262 Stock Forecast page.

Nippon Hume Corp. Reports Q1 2025 Financial Results

Nippon Hume Corporation reported a decline in net sales and profits for the three months ended June 30, 2025, compared to the same period in 2024. Despite the decrease in financial performance, the company maintains a strong capital adequacy ratio and plans to increase its annual dividend for the fiscal year ending March 31, 2026, indicating confidence in future growth.